88 Energy Ltd (LON:88E, ASX:88E) revealed it has entered its next phase with a solid financial position, ending the first half with A$7.27mln of cash on hand.
The company acquired Alaska-based peer XCD Energy during the six-month period, adding additional exploration opportunity. The A$7.27mln cash pot included A$434,000 that was held by XCD prior to the acquisition.
READ: 88 Energy expands footprint and prospect inventory
Pre-revenue 88 Energy reported a A$4.02mln loss for the period, narrowed from A$29.3mln in the comparative period of last year. The company noted that the loss was largely due to the impairment of capitalised cost related to the Western blocks assets earlier in the half-year.
In July, 88 Energy highlighted that post-XCD acquisition it is an explorer with a diversified portfolio on Alaska’s North Slope, with three distinct key areas: Project Icewine, Project Peregrine, and the Yukon licences.
The explorer noted that talks are underway regarding the Yukon acreage with nearby resource owners potentially seeking to monetise acreage and the permitting process is underway for future well drilling. Such drilling would also be subject to a farm-out.
Similarly, 88 Energy plans to conduct a formal farm-out process for its Project Icewine shale assets in order to fund further appraisal operations.